backtop


Print 26 comment(s) - last by YashBudini.. on Apr 6 at 7:23 PM

Google's possible purchase of ITA Software Inc. may lead to an antitrust investigation

It's well understood that Google is the world's most popular search engine. The company runs over one million data centers and servers around the world, and is well known by computer users of all levels from beginners to professionals. But as of late, this success is being viewed as internet dominance by both the Federal Trade Commission and the Justice Department. 

Google is an American multinational public corporation that runs the world's most successful search engine, and also owns the Android operating system. The company is also involved in cloud computing and advertising technologies. It was incorporated as a privately held company in 1998, with its initial public offering in 2004. The company has grown tremendously over the years, and now processes over one billion search requests per day. 

Now, Google is looking to expand its presence even more by purchasing ITA Software Inc., which is an airline ticketing software company. This transaction will cost Google $700 million if it decides to go through with the purchase. 

But this purchase could cost Google more than just the $700 million. According to recent reports, the FTC is looking to launch an antitrust investigation of Google's internet dominance, but the investigation will be pursued only if the Justice Department decides whether it will challenge the ITA Software purchase. 

The FTC and the Justice Department are not the only agencies looking into Google's web dominance. Last November, the European Commission launched a similar investigation, and last week, Microsoft filed a complaint with European antitrust regulators because of Google's growing presence and power over web search competition. 

According to Bloomberg, the Justice Department is expected to announce its decision soon, but there is no set time or date at this point. 



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

RE: What Competition?
By nafhan on 4/5/2011 1:17:20 PM , Rating: 2
The FTC generally will be looking for anti-competitive behavior. It's possible for a company to exert illegal anti-competitive behavior without a monopoly just as it's possible to have a monopoly without exerting anti-competitive pressure on the market.

Google's big enough that they could easily exert that type of pressure, but it's not clear that they are doing so. My opinion is that they are the leader solely by virtue of having the best products at the best price.

By announcing an investigation, the FTC is making it clear that they understand that Google could be doing something wrong, and they definitely could be. It doesn't mean that Google is doing something wrong.


RE: What Competition?
By ketchup79 on 4/6/2011 11:43:59 AM , Rating: 2
And what about probable cause? I could be doing something illegal right now, but that doesn't mean I am, or that the FTC has probable cause to come investigate me. It sounds to me like Microsoft has some influence in the FTC.


"This is from the DailyTech.com. It's a science website." -- Rush Limbaugh














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki